Who we are. A guide to PowerNet and the networks we manage
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- Mervyn McLaughlin
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1 Who we are A guide to PowerNet and the networks we manage
2 PowerNet s Vision and Values
3 About PowerNet An electricity network management company that was formed in 1994 The shareholders of PowerNet are Electricity Invercargill Ltd & The Power Company Ltd Offices at 251 Racecourse Road, 28 Onslow Street Invercargill, and 92 Charlotte Street Balclutha We have depots at Winton, Lumsden, Te Anau, Gore, Palmerston, Ranfurly, Balclutha and Stewart Island We run a 24/7 faults call centre and control room
4 PowerNet Statistics PowerNet is the fifth largest network company in New Zealand The Regulatory Value (RV) of the total assets managed is over $500 million 13,880kms of lines and cables 73 Zone Substations 15,655 transformers We deliver electricity to over 67,650 consumers
5 PowerNet Staff PowerNet employs 162 staff and 120 contractors PowerNet staff are engaged in carrying out analysis, design, construction, maintenance of electricity network assets, and managing regulatory, financial reporting and engineering services PowerNet has a commitment to its staff, investing in Training and Personal Development: Leadership Development, Staff Outward Bound scholarships, Advance Driver Training, First Aid Training, Professional Development, Conference & Industry Forum Workshops, In-House Training, Drug & Alcohol Training and impairment policy PowerNet provides a safe and healthy workplace for staff and contractors: Formation of the Semi-Quantifiable Risk Assessment (SQRA) group providing a comprehensive framework to deliver workplace safety improvements PowerNet is committed to providing a caring team environment with a balanced approach to work and personal life PowerNet is committed to continual improvement in our sustainable business practises
6 PowerNet Manages Networks The Power Company Limited (TPCL) Electricity Invercargill Limited (EIL) OtagoNet Joint Venture (OJV) Electricity Southland Limited (ESL) Stewart Island Electrical Supply Authority (SIESA)
7 The Power Company Limited Formed in 1991 and owns electricity network assets in the Southland/West Otago area excluding parts of Invercargill City and the Bluff township Has nearly 35,000 consumers Owned by the consumers connected to the network The Southland Electric Power Supply Consumer Trust (Southland Power Trust) exercises ownership rights on behalf of the consumers Consumers (Network Connections) Owners Owners Representatives Board of Directors Network Managers The Power Company Statistics: Regulatory Value of assets: $300 million 8,708km of lines 10,935 distribution transformers 33 substations
8 Electricity Invercargill Limited Formed in 1992 and owns electricity network assets in Invercargill City and the Bluff township area Has been providing electricity to Invercargill since 1905 Approximately 17,280 consumers Owned 100% by the Invercargill City Council through its subsidiary Invercargill Holdings Limited EIL Statistics: Regulatory Value of assets: $64 million 657km of predominantly underground cables and lines 450 distribution transformers Four substations
9 Map of the EIL Network
10 OtagoNet Joint Venture Formed in 2002 and owns the electricity network assets in coastal and inland Otago, from Shag Point in the north east, inland through St Bathans, then south down to the Chaslands. Approximately 14,749 consumers Owned by TPCL (72.2%) and EIL (27.8%) OtagoNet Joint Venture Statistics Regulatory Value of assets: $141 million 4,451 km of lines and cables 4,210 distribution transformers
11 Electricity Southland Limited Formed in 1995 by EIL & TPCL ESL owns the Lakeland electricity network at Frankton in the Queenstown Lakes district. Approximately 211 consumers ESL Statistics 28.3km of lines and cables 17 distribution transformers
12 Major Network Investments for 2014/15 TPCL Colyer Road Substation, Hedgehope Substation, Isla Bank Substation, Waikiwi Substation, Seismic strengthening, Smart Meters EIL Spey Street Substation, 11kV Spey Street cable project, 33kV Cable from Spey Street to Invercargill Transpower Substation, Seismic strengthening, Smart Meters OJV Merton Substation, Puketoi Substation, Milton Elderlee Street Substation ESL Reticulation of Shotover Country Subdivision Stage 7-10, Remarkables Park Eastern Access Road extension, Remarkables Park extension, Remarkables Park recreational precinct (ESL)
13 POWERNET COMPANY STRUCTURE
14 Industry Structure Where we fit in Retailers
15 PowerNet Chief Executive Jason Franklin Jason joined PowerNet in 2012 as Chief Executive. Previously he worked in a variety of senior roles for Rio Tinto and the Electricity Corporation of New Zealand (ECNZ). While with Rio Tinto, Jason held a number of commercial roles in New Zealand, Australia and the United Kingdom. These roles included the management of the energy arrangements for Rio Tinto in those countries. With his experience within the electricity generation sector with ECNZ, followed by 14 years experience in the industry as a major electricity user with Rio Tinto, led to his appointment as Chief Executive for PowerNet. He returned to New Zealand in 2008 with Rio Tinto, where he spent four years as Commercial Manager with New Zealand Aluminium Smelters at Tiwai Point then joining PowerNet in Jason has held a number of industry positions, including as an executive committee member of the Major Electricity Users Group and a member of the Wholesale Advisory Group for the New Zealand Electricity Authority. Jason is currently a director of SmartCo Limited. Jason was born and raised in Southland and is married to Thérèse. They have three teenage children. He has a Bachelor of Commerce (Accounting & Finance) and a Post Graduate Diploma (Economics & Marketing). Jason s vision for PowerNet is for the Company to continue to build upon its success and to be the leading provider of electricity network management and related services.
16 PowerNet Chair Maryann Macpherson Maryann was born, raised and educated in Southland. Her career began with 25 years in Invercargill s Inland Revenue Department with time spent in Oamaru and on projects at the department s Head Office in Wellington. In her final six years with the Inland Revenue her roles included District Commissioner in the Invercargill Office and nine months heading the internal project team managing the review of the department. As a Young Farmer, Maryann was awarded a six month Meat, Wool and Dairy Board scholarship to the United Kingdom. She was also awarded the New Zealand 1990 medal for her services to the Inland Revenue Department at a national level. In 1993 Maryann and her sister formed a partnership working on a 400 acre sheep and beef property at Dacre. In 1994, she finished her career with Inland Revenue to pursue fulltime farming. As a diversification of the farming operation Maryann developed a peony flower growing business and a café and gift Shop. In 2009 the farm property was sold and the retail operation transferred to Invercargill. Directorships have included Southern Health including six years as Chair, C.R.T. and Director of Axis Group. Maryann s current Directorships include The Power Company, Venture Southland and PowerNet. Her vision for PowerNet is to have it recognised as the leading network manager in New Zealand and to grow its business as a result of performance excellence.
17 Regulatory Partners Commerce Commission The purpose of the Commerce Commission is to enforce legislation that promotes competition in New Zealand markets and prohibits misleading and deceptive conduct by traders. The Commission also enforces a number of pieces of legislation that, through regulation, aim to provide the benefits of competition in markets where effective competition does not exist. This includes in the telecommunications, dairy, electricity, gas pipelines and airport sectors. The Commission is an independent Crown entity established under section 8 of the Commerce Act 1986.The Commission is not subject to direction from the government in carrying out its enforcement and regulatory control activities. The Commerce Commission's purpose is to achieve the best possible outcomes in competitive and regulated markets for the long-term benefit of New Zealanders. More information about the Commerce Commission can be found at PowerNet is proactive with the Compliance of Commerce Commission Determination requirements Default price and quality path (DPQP) compliance Information Disclosure (ID) statement reporting Asset management plan preparation Line pricing methodology compliance Line charge disclosure Network Loss code disclosure Provision of information to specific data requests Disclosing commercial terms for new and altered customer connections Disclosing details of retailer use of system agreements and nonstandard customer contracts Submissions Submitting on Commerce Commission consultation documents for developing the regulatory framework Participation in industry consulting groups / workshops Participation in Electricity Networks Association regulatory working group who communicate with the Commission Dialogue Proactively engaging with the Commission to clarify compliance issues Engaging with the Commission on issues specific to networks managed by PowerNet Responding to Commission queries
18 Regulatory Partners The Electricity Authority The Electricity Authority is an independent Crown entity responsible for the efficient operation of the New Zealand electricity market. The core functions of the Authority are to: make and administer the Electricity Industry Participation Code 2010 (Code) governing the New Zealand electricity market; undertake market-facilitation measures (such as providing education, guidelines, information, and model arrangements) and monitor the operation and effectiveness of market- facilitation measures; monitor and enforce compliance with the Code, various regulations, and the Act; proactively monitor the performance of the electricity industry in regard to competition, reliable supply and efficient operation; and contract service providers to operate the New Zealand electricity system and market in accordance with the Code. A responsibility of PowerNet is to ensure the networks Comply with the Electricity Authority s Electricity Industry Participation Code 2010: Part 6 Connection of distributed generation Part 10 metering arrangements Part 11 registry information management Part 12A Distributor use-of-system-agreements and distributor tariffs Part 15 Reconciliation - certified reconciliation participants and audit Compliance is also required with the Electricity (Low Fixed Charge Tariff option for Domestic Consumers) Regulations 2004 Submissions Participation in industry consulting groups / workshops Dialogue Proactively engaging with the Authority to clarify compliance issues Engaging with the Authority on issues specific to networks managed by PowerNet Responding to Authority queries For more information on the Electricity Authority visit
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